Debt Financing
For many growing businesses, access to debt financing is a critical element in assuring long-term success. During the past twenty two years, the capital markets have undergone significant changes. Successful businesses no longer feel lucky to raise debt financing; they are in fact actively sought after by a variety of lending sources. Contrary to conventional wisdom, plenty of money is available for well run businesses.
Key Consulting, Inc. has successfully helped businesses raise, refinance, and restructure debt financing. Whether you are looking to expand or your business is facing a difficult stretch, we can help. Our approach is straightforward and rooted in an open and honest dialogue between all parties.
Critical Elements Raising Debt Capital
- A Sound Management Team
- Strong Internal Accounting
- Active Working Capital Management
- Detailed Capital Spending Plans
- Ownership Commitment
- Well Prepared Financial Projections
- A Business or Operating Plan Covering at Least Three Years
- Understanding Profit vs. Cash Flow
Managing Lender Relations
- Open Door Policy
- Active Exchange of Data
- Regular Lender Meetings
- Dealing with Operating Difficulties
- Negotiating with Lenders
- Contingency Lending Plans
- Collateral and Guarantees
Sources of Debt Financing
- Commercial Banks
- Finance Companies
- Private Parties
- SBA Based Loans
- State and Local Agencies
- Credit Card Companies
- Home Equity & Personal Sources
Major Types of Debt Financing
- Term Loans
- Lines of Credit
- Commercial Mortgages
- Asset Based Financing
- Lease Purchase Options
- Letters of Credit
- Government Based Loans
- Credit Cards
- Convertible Debt
|
